Cashew continues to be a small but important cash income to small farm households that mainly produce subsistence crops (maize). The now revived local processing industry constitutes a significant source of employment and income, both for men and women, in rural areas. In this case, SNV has partnered with an organisation providing agricultural extension services (ADPP) and AMODER for microfinance. In addition, links are established with companies that out-source the processing of cashew. Although financial benefits at present are relatively small, farmers appreciate the fact that they are associated to a program to boost cashew development.
Following the analysis of the components in the value chain as well as production, harvesting, bulk, travel, processing, marketing and consumption, three key areas in the banana value chain needed to be solved: improvement of the quality of the produce, access to markets and access to financing. In this case of the banana producers of Manhiça in Mozambique, SNV is facilitating to solve these issues to 500 Manhiça small farmers, located 75 kilometres North of Maputo City, in the South of Mozambique. Producers were able to organise themselves in dynamic cooperatives, that are capable of guaranteeing volume and quality grades for differentiated markets. In addition, sales volumes increased through a project focussing on finance. The finance has helped to support the costs of transports, and technical supplies such as a small freezer, a small roof to a packing station, and fertilizers and pesticides.
How governance aspects influence production, processing and marketing. Can private sector benefit from improved governance in a value chain? This case shows that it certainly can, and moreover, that the strive for improved governance has concrete economic benefits in terms of increased income for poor people, in addition to changing the power relations in the chain.
Between July and December 2007, SNV Mozambique conducted a banana sub-sector study, showing several constraints such as low quality of bananas due to shortage of good quality inputs, tools, limited access to finance and inadequate know-how. On the other hand, it demonstrated great potential in impacting livelihoods of banana producing families. SNV’s approach focused initially on improving the marketing efficiency through establishing contacts between producers and wholesalers, aiming at a better understanding of market requirements and production potential. SNV also facilitated the increase in production by training producers and cooperatives.
Traditionally, farmers in Northern Mozambique are either subsistance farmers or agro-industrial estates. This case describes a group of emerging farmers, cultivating between five and 10 ha per family with cash crops. SNV acted as advisors to emerging sesame farmers, needing support to improve productivity, quality and linkages to the markets. The pilot phase shows to have a positive impact on income, transparency in negotiations with companies, gender, and food security.
Mozambique has fast forest areas and woodlans, where pesticides are rarely used, making this a country with potential to respond to a growing demand for organically produced honey. So far, however, lack of investment in building knowledge and producer organisations, low quality of produce and lack of access to markets meant that the opportunity to transform livelihoods through the honey trade was being missed. A Dutch entrepreneur, André Vonk, worked together with SNV to support the ‘Mozambique Honey Company’ to open up opportunities for small farmers. MHC is now a frontrunner in developing the local beekeeping sector.